1. Getting A Certificate of Origin for your Product
Doing Business in Japan Free Trade Area
Philippine Trade Training Center November 7, 2012
Ma. Rosario V. Acosta
Customs Operations Officer
Bureau of Customs

2. BENEFITS FROM JAPAN FREE TRADE AGREEMENT

3. SUBJECT OUTLINE What is a Certificate of Origin? Rules of Origin
How to Get a Certificate of Origin
Minimum Data Requirements
Operational Procedures
Primer on Rules of Origin for PJEPA: In the Preparation for Stakeholder

4. CERTIFICATE OF ORIGIN (CO)
declaration of exporter
certified by a Competent Authority (Bureau of Customs, Ministry of Trade or Department of Commerce or Chamber of Commerce)
states that the export products comply with the ORIGIN REQUIREMENTS
specified under bilateral, regional & multi-lateral Trading Arrangement

5. PURPOSES OF CO
Proves that the product exported is manufactured & produced in a specified country.
Serves as a basis of granting preferential tariff treatment by the importing country

6. RULES OF ORIGIN
Are regulations to determine the Country of Origin “nationality of the goods”
Determine whether imported products shall be subjected to a most-favoured nation (MFN) treatment or preferential treatment (e.g.,ATIGA, ACFTA, AKFTA, AIFTA, AANZFTA, PJEPA, AJCEP)
Means of determining HOW & WHEN a product can be considered as ORIGINATING from a specific country

7. RULES OF ORIGIN

8. “Originating” Goods Wholly-obtained and produced goods
Goods made entirely in the exporting FTA Party (e.g. the Philippines) from materials produced in that same country (e.g. goods grown, born and raised, gathered, or extracted in the Philippines)
Example: The Philippines’ agricultural exports including seafood harvested within the country, and mineral goods

9. Goods underwent substantial transformation process
Products manufactured from exporting country wholly or partly from imported materials or components, including materials of undetermined or of unknown origin, are considered as ORIGINATING in that country if its materials, parts or components have undergone SUBSTANTIAL WORKING OR PROCESSING there.

10. Raw Materials for Glass Manufactured by Asahi
Silica Sand
Soda Ash
Dolomite
Feldspar
Sodium Sulfate (Salt Cake)
Calumite (Azaite Slags)
Cobalt Oxide
Sodium Selenite
Sodium Nitrate
Cullet

11. Change in – tariff classification Rule (CTC Rule)
The HS code of Tempered Glass is H.S and its origin rule is “A change to heading through from any other heading; or No required change in tariff classification to heading through 70.17, provided that there is a qualifying value content of not less than 40%”. The rule requires that the 6-digit code of the Tempered Glass be different from those of the materials used in its production in the Phil.
Exported to Japan
Silica Sand H.S
Tempered Glass
H.S
Soda Ash H.S
Sodium Sulfate H.S

12. VALUE ADDED RULE (VA rule)
ROO based on value-added (i.e., value-added rule) measure the extent of manufacturing or processing undertaken in a country by reference to the value added to the good.
There are two requirements:
• the final processing must be performed in a country; and
• the value added in the country, calculated using a given formula, must satisfy the required threshold.
FOB-VNM x 100%= QVC%
FOB
The formula may measure local content based on the FOB value, the ex-factory price or the ex-factory cost. Certain cost adjustments may be required.
Packaging materials and containers for retail sale, if classified with the good, are included in the calculation of value-added while packing materials and shipping containers are excluded

13. The HS code of Tempered Glass is H. S. 7007
The HS code of Tempered Glass is H.S and its origin rule is “A change to heading through from any other heading; or No required change in tariff classification to heading through 70.17, provided that there is a qualifying value content of not less than 40%”.
Raw Materials
Country of Origin
Originating Status
Value US$
Silica Sand
Australia
Non - originating
2.10
Soda Ash
Oregon
2.30
Sodium Sulfate
China
1.70
Total
6.10
F.O.B. Price －
12.79
　　　　 F.O.B. －　V.N.M.　
Q.V.C ＝　 　　　 　　 × 100　
　　　　　　　F.O.B.
　　　　 －　6.10　
Q.V.C ＝　 　　　 　　 × 100 = 52.30%　
　　　　　　　12.79

14. Specific Manufacturing Or Processing Operation Rule (Process Rule)
ROO based on process ascertain the critical process or element in the manufacture of a good. The country where such a critical process is done or where a critical element is obtained would be the country of origin of the good.

15. PSR Rule: A change to heading 61. 01 , through 61
PSR Rule: A change to heading , through from any other chapter provided that where non-originating materials of heading 50.07,51.11 through 51.13, through 52.12, through 53.11, through 54.08,55.12 through or chapter 60 are used, each of the non-originating materials is knitted or crocheted in either Party or a non-Party which is a member country of the ASEAN.
Sewed
Canada
Thailand
Knitted
Sweater
Chapter 61
Wool
51.01
Yarn
51.06

18. Minimum Data Requirement for CO under Annex 3
Exporter’s name, address and country
Importer’s name, address and country
Certification Number
Origin of good (s)
Invoice number and date
Transport details (if known)
HS tariff classification number
Marks, numbers, number and kind of packages; Description of good (s)
Quantity (Unit)
Origin criterion
Remarks (e.g. application of de minimis, accumulation
Declaration by the exporter
Certification

19. Minimum Data Requirement for CO under Annex 3

20. OPERATIONAL PROCEDURES

21. Issuance of a Certificate of Origin
Form JP should be on ISO A-4 size paper
H.S. Code
Issued by the competent authority
CO must bear a reference number
CO issued one day after the date of shipment
CO can be issued within 12 months and indicate “ISSUED RETROACTIVELY” in Box 9
Multiple items declared in the CO allowed, provided each item are qualified as originating good
Signature of the competent authority

22. B. Application C. Modification D. Minor Error
Notice to Exporter (CMO # )
Presentation of documents for the evaluation, 5 days before the shipment date
Plant visit as needed
C. Modification
In the event of loss, new certificate of origin can be issued
D. Minor Error
Typing errors, discrepancies or omissions

23. E. Single Shipment F. Invoice of a Non Party G. Others
Two or more invoices for one shipment can be accepted
F. Invoice of a Non Party
Third Party Invoicing is allowed and to be indicated in Box 9
G. Others
If some goods not subject to preferential are included in the CO, the said CO is still valid.

24. Procedures: Post Exportation
EXPORTER: Presents CO declaration to the Export Division at the time of exportation or as soon as thereafter, with the ff. : a) Copy of Export Declaration w/ Authority to Load b) Commercial Invoice c) Commodity Clearance / Permit to Export d) Duplicate copy of B/L or AWB.

26. PRIMER ON RULES OF ORIGIN
FOR PJEPA
IN THE PREPARATION FOR STAKEHOLDER
Notice to readers
This primer is just a reference for your understanding. If you deal with actual trade under PJEPA, you should read main body, Annexes, or Operational Procedures of the Agreement or other related domestic laws and regulations at first.
In the event of any inconsistency between this primer and PJEPA (like modification or elimination of the contents or definitions of PJEPA), contents or definitions of the Agreement should prevail to the extent of the inconsistency.

27. Thank you
for your attention...